Asset Allocation

Thought it might be interesting to share asset allocation of portfolios with each other, so we can learn about that.

Mine is now defensively geared given the recessionary environment the world faces.

EQUITY SECTORS:
4.5% consumer staples, the sector is bearish at the moment but a few select stocks are bullish.

10% healthcare, mostly in XLV ETF, with some select individual stocks

10% biotech, bullish as well - split across 7 smaller biotechs.

4.5% technology, sector remains bullish but will be the first to turn when we hit the next downturn, so keeping a close eye on it.

EQUITY FACTORS:
4.5% Low volatility ETF
4.5% High dividend ETF

FIXED INCOME:
40% US treasuries, split across short, medium and long-term

COMMODITIES:
12% gold, mostly in SGLP physical gold ETF, with some gold miners.

CASH:
10% cash - defensive but also to jump on opportunities. Ideally I’d gain exposure with this to USD but no appropriate ETF in my ISA for that.

All sectors I will fade out of when the economic cycle evolves, with the exception of Biotech which are long-term bets for me.

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Forgot to add, all the stock picking in here was reinforced by using Genuine Impact of course and on the basis of that, I replaced some of my initial ideas. :+1:t2:

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Very interesting! I always love to see other’s allocations.

This the breakdown of my AJ Bell ISA.

I am very bullish on equities and sensitive tech. I have almost zero in cash, other than the bonds and investment trusts which have partial cash holdings themselves.

I’ve been shifting around holdings so part analysis is semi pointless but fun to look out none the less.

Looks like in the short term I am under performing against a passive tracker.

I am largely driven by high growth, high target price multiples. Slid quality helps to make that a less bumpy trip.

And some historic stats to finish it off.

All in all I am bullish on tech and the US followed by UK.

I might look at some emerging equities when things return to normal. Maybe trade in some of my less exciting bond holdings.

In terms of FX I have heavy USDGBP exposure and the rates does cause swings in my portfolio. Keeps it exciting even when the market is calm :rofl:

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Like it, its the type of portfolio I typically have as well, it’s just that I am more bearish at the moment so re-adjusting accordingly. I also like how AJ Bell gives that overview, challengers have nothing like that yet - have to do it all manually.

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The morningstar x-ray being built in is very useful but not really a big selling point. It’s a shame these value add tools aren’t considered more useful.

As a side note, if you ever want to use the morningstar breakdown and analysis, you can do so for free without an account.

https://tools.morningstar.co.uk/uk/xray/editholdings.aspx?LanguageId=en-GB

Useful for a snapshot of your holdings. I find it most useful for breaking out my funds into individual security exposure. Making sure I am not unknowingly doubling my exposure to a single company.

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That’s always the risk with ETFs, especially since they tend to gravitate towards the big players.

XLK tech ETF is an extreme example of that - 42% allocation to MIcrosoft and Apple!!!

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I had to go look for myself

Not the fund for me! You are totally right, it’s so important to know how and what funds are investing into.

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